Long Lake Duplex Development — Investor Proforma
2055 S Long Lake Road, Fenton, MI 48430 · 4 parcels · 4.58 acres · 8 duplex buildings · 16 rental units · Plans: Steven C. Flum, Inc. (AIA) · Bid: Transparent Construction LLC
1Site & Entitlement ZONING CONFIRMED
Listing: 2043 S Long Lake Rd (same 4 parcel IDs) — MLS #20261003843, Realcomp II · John Tremaine, Tremaine Real Estate, 810-444-0495 / Ashley Provenzola 810-772-8873. Schools: West Shore Elem / Lake Fenton Middle / Lake Fenton High.
⚠ Acreage discrepancy — resolve before purchase
- Architect's zoning sheet: 4 parcels × 66' × 600' = 4.58 acres (and the 16-unit density math relies on it: 128,000 sf required < 174,240 sf).
- Zillow/MLS listing: 3.25 acres, dimensions 250 × 567. At 3.25 ac (141,570 sf), 16 units still passes the 8,000 sf/unit minimum (128,000 sf) — but the margin shrinks and a survey must confirm before closing. If actual area is under 128,000 sf, max unit count drops.
| Zoning Requirement | Required | Proposed | Status |
|---|---|---|---|
| Min lot area per unit | 8,000 sf × 16 = 128,000 sf | 174,240 sf | OK |
| Max density | 8 units/acre (36 max) | 16 units (3.5/acre) | OK |
| Height | 2 story / 25' max | 1 story / 17' | OK |
| Setbacks (front/side/rear) | 25' / 7'+17' / 35' | 35' / 28'+56' / 38' | OK |
| Min floor area per unit | 780 sf | 1,763 sf | OK |
| Max lot coverage | 30% (52,272 sf) | 16% (28,208 sf) | OK |
Source: Steven C. Flum, Inc. concept site plan & zoning analysis, 4/30/2026. Per-plan product: side-by-side duplex, ~44' × 52' footprint, 4 bed / 2.5 bath per unit, attached 2-car garage, stone + vinyl exterior.
2Construction Scope & Cost — Per Duplex Building (2 units)
Source: Transparent Construction LLC estimate "Fenton Duplex budget," dated 06/09/2026. One duplex building + its lot only. Low/High range as bid; bid total reflects a 5% labor discount.
| # | Scope Item | Basis | Low | High |
|---|---|---|---|---|
| 1 | Site work & excavation | $15–25 /sf — grading, drainage, site conditions | $31,500 | $52,500 |
| 2 | Foundation (basement/crawl) | $25–35 /sf — waterproofing, slab | $42,000 | $63,000 |
| 3 | Framing (lumber + labor) | $35–50 /sf | $73,500 | $105,000 |
| 4 | Exterior (roof, siding, windows, doors) | $30–40 /sf | $63,000 | $84,000 |
| 5 | Mechanical (HVAC, electrical, plumbing) | $35–50 /sf | $73,500 | $105,000 |
| 6 | Insulation | $5–8 /sf | $10,500 | $16,800 |
| 7 | Drywall (hang, tape, finish) | $12–16 /sf | $21,000 | $33,600 |
| 8 | Interior finishes (trim, flooring, cabinets) | $50–75 /sf | $105,000 | $157,000 |
| 9 | Fixtures & final | $12–20 /sf | $25,200 | $42,000 |
| 10 | Overhead & profit | $15–25 /sf — contingency, margin, PM | $31,500 | $52,500 |
| Subtotal | $476,700 | $711,400 | ||
| Labor savings (−5%) | −$23,835 | −$35,570 | ||
| Bid total per duplex (2 units) | $452,865 | $675,830 | ||
| Per unit | $226,433 | $337,915 |
Items NOT in the bid — researched pricing, pending contractor/municipal verification PENDING VERIFICATION
Purple = TR-researched benchmark ranges (Michigan/Midwest 2025–26 cost data: municipal fee schedules, utility service-extension norms, HomeAdvisor/Angi installer data, RSMeans-type per-sf figures). Not contractor quotes yet — verify with Transparent Construction, City of Fenton, and Consumers Energy/DTE before contract.
| Excluded Item | Basis | Low | High |
|---|---|---|---|
| Water + sewer tap-in / connection feesPV | municipal fees, 2 units (sewer & water are at the street per MLS) | $4,000 | $10,000 |
| Water + sewer laterals (street → building)PV | ~50–100 ft runs, MI 42"+ frost depth trenching | $7,500 | $15,500 |
| Gas + electric service connectionPV | Consumers/DTE service drops, meters ×2 units | $3,800 | $12,000 |
| Share of private drive (1/8 of ~600 ft asphalt)PV | $90k–$190k total incl. base & grading ÷ 8 | $11,300 | $23,800 |
| Share of storm water management (1/8)PV | $25k–$75k detention for 3–4.5 ac site ÷ 8 | $3,100 | $9,400 |
| Soft costs: A&E, civil, permits, builder's riskPV | ~6–8% of vertical cost | $27,200 | $54,100 |
| ContingencyPV | 5% of vertical cost | $22,600 | $33,800 |
| Pending-items subtotal per duplex | $79,500 | $158,600 | |
| ALL-IN per duplex building (bid + pending) | $532,365 | $834,430 | |
| All-in per unit | $266,183 | $417,215 |
⚠ Still must resolve with Transparent Construction
- Square-footage mismatch. The bid's per-sf rates back out to ~2,100 sf per building, but the architect's zoning sheet lists 1,763 sf per unit (~3,526 sf per duplex building). If the plan sf is right, real cost trends toward the High end or above. Re-confirm the bid against the A-series drawings.
- Confirm whether finishes/fixtures include appliances, landscaping, and concrete flatwork (drive approaches, walks, porch slabs).
3Full Project Budget — 8 Duplexes / 16 Units
| Component | Basis | Low | High |
|---|---|---|---|
| Vertical construction (8 buildings) | 8 × contractor bid | $3,622,920 | $5,406,640 |
| Site development: road/drive, storm, common utilitiesPV | allowance, plot-wide | $320,000 | $560,000 |
| Utility tap-ins & connection feesPV | $12k–20k per building allowance | $96,000 | $160,000 |
| Soft costs: A&E, permits, survey, legal, insurancePV | ~6% of hard cost | $242,000 | $367,000 |
| ContingencyPV | 5% of hard cost | $202,000 | $306,000 |
| Land acquisition (4 parcels) | Active listing $350,000 — MLS #20261003843, Tremaine RE, 144 DOM (listed $275k 1/19, raised +27% on 3/27 — negotiable) | $315,000 | $350,000 |
| Total project cost (incl. land) | $4,797,920 | $7,149,640 | |
| Per unit all-in (incl. land) | $299,870 | $446,853 |
Purple rows marked PV are TR-researched ranges pending verified quotes — they are not in the contractor's bid. Replace with engineer/municipal quotes as received.
4Operating Assumptions EDITABLE — numbers below recalculate live
Defaults: rent $2,200 is the midpoint estimate for NEW 4-bed duplex w/ garage (older 3BR stock in Fenton lists $1,700–$2,100 — new product carries a premium; verify with a leasing comp study). Tax verified: City of Fenton non-homestead millage runs ~38.8–45 mills (city operating 9.84 + SET 6.0 + school non-homestead 18.0 + county/ISD); at ~$162k taxable value (half of ~$325k unit value) that's ~$6,300–$7,300/unit/yr — default $6,500 sits mid-range. Parcel is in Lake Fenton Community Schools. Units are individually metered (plans show separate furnace/HWH/meters per unit) — tenants pay utilities.
5Stabilized Annual Proforma — 16 Units
| Line | Per Unit / mo | Annual (16 units) |
|---|---|---|
| Gross potential rent | — | — |
| Less vacancy & credit loss | — | |
| Effective gross income | — | |
| Property taxes | — | |
| Insurance | — | |
| Repairs & maintenance | — | |
| Property management | — | |
| Net operating income (NOI) | — |
6Exit Option B — Sell as Condos (split each duplex into 2 owned units)
Each duplex splits into 2 site-condo units under a Michigan condominium master deed (Act 59) — two separate owners per building, sold individually. Requires condo docs + survey (~$15k–$30k totalPV) and association bylaws for shared drive/storm maintenance.
Recently SOLD condo/attached comps — Fenton, MI (Realcomp via Zillow sold records, pulled 6/12/26)
| Address | Specs | Sold | $/sf | Date |
|---|---|---|---|---|
| 320 Whispering Pines Dr #21 | 3 bd / 3 ba · 1,800 sf | $329,251 | $183 | 6/05/26 |
| 170 Whispering Pines Dr #36 | 3 bd / 3 ba · 1,800 sf | $315,000 | $175 | 5/04/26 |
| 2336 Swans Cove #7 | 3 bd / 4 ba · 2,529 sf | $405,000 | $160 | 6/04/26 |
| 2270 Golden Pond | 2 bd / 3 ba · 1,560 sf | $319,000 | $205 | 5/05/26 |
| 13024 Harbor Landings Dr #3 | 2 bd / 3 ba · 3,202 sf | $366,500 | $114 | 5/19/26 |
| 730 Eagle Dr #14 | 3 bd / 2 ba · 1,619 sf | $275,000 | $170 | 5/15/26 |
| 907 Watercress Ln | 3 bd / 2 ba · 1,612 sf | $277,500 | $172 | 6/04/26 |
| 210 Pineview Dr #3064 | 2 bd / 2 ba · 1,248 sf | $292,000 | $234 | 4/21/26 |
| Newer/larger attached product trades ~$160–$205/sf; resale median ≈ $175/sf | ||||
Sell-out math — editable
Selling cost default = 6% commission + Michigan transfer tax $8.60/$1,000 (0.86%) + ~1% title/closing. Carry = taxes, insurance, interest while units await sale.
| Line | Per Unit | 16 Units |
|---|---|---|
| Gross sales | — | — |
| Selling costs | — | |
| Condo conversion docs + carry | — | |
| Net sale proceeds | — | |
| Total project cost (scenario from Section 4) | — | |
| Developer profit (pre-tax) | — |
Honest read: nothing comparable to a NEW 4-bed/2.5-bath attached unit with 2-car garage exists in Fenton inventory — comps are 2-3 bed resales. That supports a premium, but it also means the $310k–$345k range is unproven. Recommend listing the first building as a market test (or pre-selling from plans) before committing all 8 to either strategy. A hybrid — sell 4 buildings to recover capital, keep 4 as rentals — is also on the table.
8Financing — loan options & true cost of money EDITABLE
2026 market ranges for ground-up small-multifamily in Michigan. Construction phase uses interest-only on the average drawn balance (~55–60% of the loan over the build). DSCR is the refinance OUT of the construction loan once leased — not a build loan. No PMI on any of these (PMI is owner-occupied conventional only); lenders price risk via rate, points, and LTC instead.
| Loan amount (LTC × total cost) | — |
| Equity required (your cash in) | — |
| Origination points | — |
| Interest carry (avg drawn balance × rate × term) | — |
| Draw inspection fees ($200 avg × draws) | — |
| Appraisal (plans-review) + title + legal + doc | — |
| Total cost of money — construction phase | — |
| As % of total project cost | — |
| Type | Rate | Points | Max LTC |
|---|---|---|---|
| Bank / CU construction | 6.5–9.5% | 0.5–1.5 | 75–80% |
| Hard money / private | 9.5–13% | 1.5–3 | 85% LTC / 75% ARV |
| DSCR refi (after lease-up) | 5.75–8.5% | 0.5–2 | 75–80% LTV, DSCR ≥1.15–1.25 |
| Conventional (owner-occ only) | N/A for a 16-unit investor build — listed for completeness; PMI only exists here | ||
9Deal Targets — what the numbers must be for this to WIN EDITABLE
Set your goals; this solves BACKWARD for the max land price, max vertical (building) cost, max horizontal (site) cost, and required sale price / rent. Vertical = the 8 buildings. Horizontal = drive, storm, taps, laterals, utilities. Soft = A&E, permits, financing, contingency.
| Net revenue (after ~7.9% selling costs) | — |
| Max TOTAL budget allowed | — |
| − Land (your input) | — |
| − Horizontal / site (your input) | — |
| − Soft costs + contingency | — |
| MAX VERTICAL — all 8 buildings | — |
| = Max per duplex building | — |
| vs Transparent bid $452,865–$675,830 | — |
| NOI at your rent (after 5% vac + opex) | — |
| Max TOTAL budget allowed (NOI ÷ yield) | — |
| − Land − horizontal − soft | — |
| MAX VERTICAL — all 8 buildings | — |
| = Max per duplex building | — |
| OR: rent needed at midpoint cost | — |
Return basis: profit ÷ total project cost (unlevered, full-cycle ≈ 2 yrs). Mike's stated goals: ≥$1M profit / 30% IRR selling, 10% yield / 25% IRR renting. With construction debt at ~65–75% LTC, a ~15% unlevered margin levers to roughly 30%+ IRR on equity over the 2-year cycle; the 10% rental yield similarly levers to ~25% IRR on equity. Lender terms will refine this.
10Development Timeline — ~26 months to full stabilization
Phased build: 4 buildings per phase keeps crew continuity, staggers capital draw, and lets Phase 1 lease-up income support Phase 2. Michigan weather window: target foundations Apr–Oct.
11Market Snapshot — Fenton, MI
- Supply gap: virtually no new-construction rental product in Fenton — inventory is older single-family homes; a new 4-bed/2.5-bath with attached 2-car garage has no direct competition.
- Demand drivers: US-23 corridor commuters (Ann Arbor/Flint/Brighton), top-rated Fenton schools, lake-area lifestyle, walkable downtown.
- Tenant profile: families and downsizing professionals priced out of $350k+ new-build ownership at current rates.
- To firm up before investor distribution: Rentometer/CoStar comp pull for new 4BR product, City of Fenton non-homestead millage confirmation, local insurance quote.
Sources: Steven C. Flum, Inc. concept plan & zoning data (4/30/26) · Transparent Construction LLC estimate (6/9/26) · NeighborhoodScout — Fenton, MI · City of Fenton tax info · active rental listings (Fenton area, June 2026). Figures marked EST are estimates pending verified quotes.